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Rep. Issa on USPS Plans to Cut Saturday Deliveries

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    Rep. Darrell Issa, (R-Calif.), on the Postal Service’s efforts to cut spending.

  • Duration 5:08
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Since Saturday makes me.

And -- in the United States Postal Service the USPS announcing.

A new plan to cut home mail delivery to just -- days a week that could start as soon as this summer.

It would be a star to end the believing the post office -- sixteen billion dollars last year alone.

And still continues to lose 25 million a day.

It's questionable whether congress will OK the -- but even if it does pass would be annual two billion in savings from cutting Saturdays.

-- help to struggling to snail mail service congressman's airline says chairman of the house oversight and Government Reform Committee nice to have you on the show.

Let's ask you a lot of people -- the postmaster general didn't have the authority to go ahead and do this the president says.

He just heard about it yesterday can he do this.

Absolutely it's an independent agency and I've reviewed congress' instructions.

And it simply says he'll maintain the level of service available in the 1980s and he's doing that.

There's no question that some things have to cost more.

But understand for all your viewers.

Every American home we'll have the opportunity have either a letter or package received on Saturday the difference now is that -- priority mail.

We pay a little bit more for that Saturday service.

But not only does it save two billion dollars for the post office it's the beginning of saying.

We need individual visualize service we need to do the right service on the right day in the right way.

I mean to -- you.

That is -- beginning and it is just the beginning especially if you look at the losses that we knew they lost sixteen billion dollars last year was triple what they lost the year before 25 million today.

They expect to save two million dollars would this move but some say that's ambitious it's not even gonna add up to that much what else should they be doing.

The first of all they're going do not only saved two billion but they're gonna increase their volume and priority mail so they're probably going to actually have a net revenue increased.

But the other things they need to do.

You and I have all received more and more packages than ever before the post office has to reconfigure itself to be the best package delivery -- company.

Because that's the area that there's growth.

No means I have slowly and really not areas up 14% in the past two years like you said well in the past ten years snail mail is down 10%.

Should they get rid of some of that service should they charge a whole lot more for snail mail what do you think the answer is there.

It's gonna be a little -- yes the cost of -- first class letter could go up a little but let's understand that.

There's 37 million homes in America where you pay packages left on the -- rather than being put into a secure mail box.

And as the post office seeks to change that they're also gonna save about five million dollars by delivering to the curb.

In a cluster box rather than to the shoot so it's a win win for the consumer we have a lot of areas in which the postmaster in congress agree that these changes have to happen.

And they will last -- the postmaster cut a lot of cost.

But to cut more beyond this move is going to take congressional action we need to work with the postmaster.

To get this essential service to break even EO -- like my.

About apple when you look at it 80% of the cost come from labor I mean that's really the problem you have to shrink the size of labor.

At the post -- -- in some of the benefits that they're getting.

You know do you think does congress have the appetite to do that really make some big changes in those labour costs.

But that's -- good news for you the average age of a postal worker is 59.

So it's not about laying off people it's about simply -- -- encouraging people to retire and making sure you don't need to replace them with a new worker.

And that's something that these kinds of efficiencies.

Can do.

And it's it's a big part of what congress has to do.

Minimize a number of post offices maximize the number of service reconfigure for packages pictures secure delivery systems.

We do all of that and the important.

I -- -- your retirement home blossoming what you -- sort of scares me because retirement costs are big part of the problem it's the pension costs.

And the health care for retired employees are some of the things that people point -- you as being the biggest overhang in fact they wanna not fully fund that plan.

As a way to save money to -- people retiring.

I don't know that doesn't seem like it's gonna solve the problem congressman.

We you have a good point except for the eleven billion that the Postal Service defaulted on their fully funded into their system in other words they've been paying as you go just as all of us do in social security and Medicare.

For health care.

And their retirement and so when these individuals retire into what's called first today.

The federal employee retirement system is fully funded -- big come off the payroll of the post office and they draw from the pension that they've been paying into so.

The fact is that these changes he's reductions in force will actually right -- the post office.

You've made another point though there are other things that need to be worked on the cost of health -- the -- -- asked for more authority.

To go out for a single bid on health care.

Dramatically reducing his cause for 500000.

Workers that's something congress has to let him do yeah -- -- let -- show that he can save money.

Yeah absolutely I mean you're so right about that congressman that you so much for coming on today we appreciate your time.

My pleasure thank you so here.

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